Wilcon Depot, Inc. · PSE:WLCON
Wilcon Depot — H1 2023 Earnings Presentation
24 slides from Wilcon Depot's earnings presentation, Jul 27, 2023
Slide 1: 6M 2023 Earnings Briefing
6M 2023 Earnings Briefing July 27, 2023 | 3:00 PM
Slide 2: Second Quarter 2023 Results
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Slide 3: 2Q 2023 Results Highlights
2Q 2023 RESULTS HIGHLIGHTS Financial Highlights Comparable Sales Summary 2nd QUARTER 2023 -3.4% SSSG ✓ Php 8.624B Net Sales SAN FERNANDO, PAMPANGA -7.4% Transaction Count ✓ 4.0% y-o-y Net Sales growth 4.4% Ticket Size ✓ Php 856M NIAT Total Sales Mix ✓ 39.5% GPM 51.0% In-house & exclusive contributio
Slide 4: Total Net Sales Breakdown – 2Q 2023
Total Net Sales Breakdown – 2Q 2023 Home 2Q2023 Projects, Home 2Q2022 Projects, Essentials, 110, 1.3% Essentials, 65, 0.8% Php Millions 181, 2.1% 147, 1.8% 4.0% Depots, Depots, 8,333, 96.6% 8,078, 97.4% Sales Growth per Store Format Product Category Performance 2Q2023 VS 2Q2022 2Q2023 VS 2Q2022 Bett
Slide 5: Comparable Sales Summary
Comparable Sales Summary Quarterly Trend Comparable Sales per Format 2Q2023 vs 2Q2022 68.9% 49.9% 14.8% 14.9% -3.9% -7.3% DEPOT Home Essentials Projects 5 2Q2023 2Q2022
Slide 6: Second Quarter 2023
SECOND QUARTER 2023 (In Php MM) 2Q2023 % Sales 2Q2022 % Sales % Growth Net Sales 8,624 100.0 8,290 100.0 4.0 Cost of Sales -5,217 -60.5 -5,064 -61.1 3.0 GPM rate increased to 39.5% Gross Income 3,408 39.5 3,226 38.9 5.6 Operating Expenses -2,207 -25.6 -1,840 -22.2 19.9 Lease-related expense Interest
Slide 7: First Half 2023 Results
FIRST HALF 2023 RESULTS — % —M
Slide 8: 1H 2023 Results Highlights
1H 2023 RESULTS HIGHLIGHTS Financial Highlights Comparable Sales Summary Php 1.406B -0.2% SSSG ✓ Php 17.152B Net Sales CAPEX -4.3% Transaction Count ✓ 7.6% y-o-y Net Sales growth 4.3% Ticket Size Opened 4 New Stores ✓ Php 1,818M NIAT Total Sales Mix 1st HALF 2022 ✓ 39.5% GPM 50.7% • Guiguinto, Bulac
Slide 9: Total Net Sales Breakdown – 1H 2023
Total Net Sales Breakdown – 1H 2023 Home 1H2022 Projects, Home 1H2023 Projects, Essentials, 118, 0.7% Essentials, 161, 0.9% 286, 1.8% Php Millions 351, 2.0% 7.6% Depots, Depots, 16,640, 97.0% 15,538, 97.5% Sales Growth per Store Format Product Category Performance 1H2023 VS 1H2022 1H2023 VS 1H2022 B
Slide 10: Comparable Sales Summary
Comparable Sales Summary Trend Comparable Sales per Format 1H2023 vs 1H2022 35.8% 29.7% 11.8% 5.9% -0.4% -0.8% DEPOT Home Projects Essentials 10 1H2023 1H2022
Slide 11: First Half 2023
FIRST HALF 2023 (In Php MM) 1H2023 % Sales 1H2022 % Sales % Growth Net Sales 17,152 100.0 15,942 100.0 7.6 Cost of Sales -10,381 -60.5 -9,784 -61.4 6.1 GPM rate increased to 39.5% Gross Income 6,771 39.5 6,158 38.6 9.9 Operating Expenses -4,367 -25.5 -3,606 -22.6 21.1 Lease-related expense Interest
Slide 12: Balance Sheet
Balance Sheet Unaudited Jun 30, 2023 Audited Dec 31, 2022 Current Assets 17,367 17,385 Noncurrent Assets 19,407 18,258 Total Assets 36,774 35,643 Current Liabilities 8,026 7,659 Noncurrent Liabilities 7,904 7,441 Total Liabilities 15,930 15,100 Capital Stock 4,100 4,100 Additional Paid-in Capital 5,
Slide 13: 1H 2023 CAPEX Investment
1H 2023 CAPEX Investment 1H 2023 Actual Capex Breakdown Spent New Store 1,030 New Warehouse 138 Renovation and Repairs 64 Solar Panel Projects, Store & 148 Transportation Equipment IT Infrastructure and Projects 27 Total CAPEX (in millions Php) 1,406 13
Slide 14: Improving Margins
Improving Margins 39.1 39.5 GPM 37.3 34.4 33.4 31.4 29.7 EBITDAM 18.6 17.7 15.8 13.1 EBITM 11.9 11.9 15.2 10.4 14.0 11.2 11.4 12.3 9.8 8.8 NPM 11.5 10.6 8.7 8.7 9.3 7.8 6.4 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 1H2023 Note: ROU depreciation and interest expense charged on lease liability were co
Slide 15: Returning Value to Shareholders
Returning Value to Shareholders Cash Dividend per share over time: (Php/share) 15
Slide 16: Store network expansion and growth strategies
Store network expansion Continue to build and develop in- house products and carry exclusive brands Physical and online store layout, features and customer experience enhancements Further strengthen and increase brand awareness and visibility 16
Slide 17: 2023 Planned New Branches
2023 Planned New Branches 2023 Beg. Balance 83 Guiginto, Bulacan Jan, 2023 Rosario, Batangas 64 Mar, 2023 1st Half 7 Uptown, CDO Apr, 2023 San Fernando 2, Pampanga Jun, 2023 Sta. Maria, Bulacan 10 Naic, Cavite 2nd Half Iligan City, Lanao del Norte 1 9 Tuy, Batangas Total, end 91 Total Planned New De
Slide 18: FY2023 CAPEX Budget
FY2023 CAPEX Budget FY2023 1H2023 Remaining Capex Breakdown Budget Actual Spent Balance New Store 2,205 1,030 1,175 New Warehouse 405 137 268 Renovation and Repairs 672 64 608 Solar Panel Projects, Store & 350 148 202 Transportation Equipment IT Infrastructure and Projects 214 27 187 Total CAPEX (in
Slide 19: Continue to Expand Margins Thru In-house & Exclusive Brands
Continue to Expand Margins Thru Increasing the Profitability of In-house & Exclusive Brands • Improve supply chain management • Enhance marketing efforts ✓ Enhance the Company’s ability to provide its Optimize product lines/ customers with value for money products product offerings ✓ Rationalize pro
Slide 20: Physical and online store layout, features and customer experience enhancements
Physical and online store layout, features and customer experience enhancements • Constant innovations in store layout, features and customer experience that add value to our relationship with our customers and consistently differentiate us from competition 20
Slide 21: Further Strengthen and Increase Brand Awareness and Visibility
Further Strengthen and Increase Brand Awareness and Visibility ✓ Tap various media outlets especially social media to enhance customer’s awareness ✓ Localization of advertising and promotions ✓ Use brand ambassadors to represent the Company’s products and brands ✓ Actively participate in industry as
Slide 22: Thank You!
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Slide 23: Q&A
Slide 24: Forward Looking Statements
FORWARD LOOKING STATEMENTS Disclaimer The above contains statements about future events and expectations that constitute “forward- looking statements.” These forward-looking statements include words or phrases such as the Company or its management “believes”, “expects”, “anticipates”, “intends”, “ma